Has the Buyer's Market Arrived? Nearly Half of Sellers Are Making Concessions

With 44.7% of home sales now including seller concessions, buyers are gaining leverage — and sellers need the right pricing and negotiation strategy to compete.

Short answer: In August, 44.7% of U.S. home sales included a seller concession, up from 42.6% a year earlier and the highest share for that month since at least 2020, according to Redfin. Even more telling, 15.8% of August sales included both a price reduction and a concession — also the highest August share on record. Nationally, the balance is shifting toward buyers, though conditions still vary considerably by location, price range, and property type.

Why Are Buyers Gaining Leverage Right Now?

Two forces are driving this shift: elevated mortgage rates and rising housing inventory. Higher borrowing costs have reduced how much home many buyers can actually afford, while more available inventory gives the buyers who are still shopping more choices. When buyers don’t feel pressure to compete for every listing, they negotiate harder, ask for concessions, and — if the numbers don’t work — simply move on to another home rather than stretching to meet a seller’s asking price.

What Exactly Counts as a Seller Concession?

A seller concession is anything of value a homeowner agrees to provide the buyer as part of the transaction, beyond simply lowering the price. Common examples include money toward the buyer’s closing costs, funds for repairs identified during inspection, a mortgage-rate buydown that reduces the buyer’s monthly payment, or covering a home warranty. Redfin tracks these concessions separately from straight price reductions, which is why a sale can include a concession, a price cut, or both.

How Much Did Concessions Actually Increase?

Concessions appeared in 44.7% of August sales, up from 42.6% the year before — a meaningful year-over-year increase and the highest share for the month of August in Redfin’s records dating back to at least 2020. Perhaps more revealing: 15.8% of sales combined a concession and a price reduction, up incrementally from 15.6% a year earlier, and also an August record. That combination — a seller both cutting price and adding a sweetener — is a clear signal of how much negotiating room today’s buyers actually have.

Does This Vary a Lot by Location?

Significantly. Concessions are heavily concentrated in Sun Belt metros that saw major pandemic-era construction booms, where supply has outpaced demand.

Metro	Share of August sales with a concession
Atlanta, GA	72.8%
Charlotte, NC	67.9%
Phoenix, AZ	67.4%
Las Vegas, NV	66.7%
Raleigh, NC	66.3%

At the other end of the spectrum, concessions are far less common in tighter, seller-favored markets:

Metro	Share of August sales with a concession
San Jose, CA	4.2%
New York, NY	5.7%
San Francisco, CA	18.6%
Chicago, IL	21.9%
Philadelphia, PA	25.5%

This is exactly why a national statistic, however striking, tells you very little about your own listing — a seller in Atlanta and a seller in San Jose are operating in fundamentally different negotiating environments this month.

Has a Full Buyer’s Market Actually Arrived?

Nationally, the data points that direction — this was characterized as the strongest buyer’s market in records dating back to 2013, driven by more homes for sale and fewer buyers actively competing for them. But “buyer’s market” isn’t a single national light switch. Real estate conditions vary considerably by location, price range, and property type, and several markets (San Jose, New York, San Francisco among them) remain tilted toward sellers, where buyers still have comparatively little leverage.

What Does This Mean for Your Pricing Strategy?

Today’s buyers have more homes to choose from and less urgency to compete for any single one. If your home is priced aggressively relative to what’s actually selling nearby, you’re more likely to see buyers simply move on rather than submit a lower offer. Pricing accurately from the start — based on genuinely comparable recent sales, not last year’s market or your own hoped-for number — matters more in this environment, not less.

Should You Plan to Offer Concessions Before You Even List?

Not necessarily as a blanket rule, but it’s worth going into your listing with a realistic expectation that a concession request is likely, particularly in a market where a majority of nearby sellers are already offering them. Deciding in advance what you’re comfortable offering — a closing-cost credit, a repair allowance, a rate buydown — puts you in a stronger position to respond quickly and confidently when an offer includes a request, rather than negotiating from a position of surprise.

Does This Change How You Should Think About Commission Costs?

If anything, it makes them matter more. In a market where buyers are extracting more value through concessions and price cuts, protecting your net proceeds on the side you do control — commission — becomes a bigger part of your overall outcome.

	Traditional agent	IDEAL AGENT	You save
Listing commission	3%	2%	1%
Buyer’s agent commission	3%	2%	1%
Total (if buyer has an agent)	6%	4%	2%

If a buyer comes directly through your IDEAL AGENT agent’s own marketing, with no separate buyer’s agent involved, your total commission is capped at just 2% combined. IDEAL AGENT matches sellers with a top 1% local agent who understands exactly how concession-heavy your specific market has become, and who can help you price and negotiate accordingly — without a traditional commission structure adding further pressure to your net proceeds.

What Should You Actually Do With This Data?

Find out how common concessions and price cuts actually are in your specific neighborhood and price range before you list — not just at the national level. An agent with current, local transaction data can tell you whether you’re selling in an Atlanta-like environment where concessions are close to standard practice, or a San Jose-like environment where they remain the exception.

Frequently Asked Questions

What counts as a seller concession?

Anything of value a seller provides the buyer beyond the sale price itself — commonly money toward closing costs, repair credits, or a mortgage-rate buydown. Price reductions are tracked as a separate category.

Is 44.7% the highest concession rate ever recorded?

It’s the highest share specifically for the month of August in the available data, which goes back to at least 2020 — not necessarily the highest of any month on record.

Does a rising concession rate mean home prices are falling everywhere?

Not directly — concessions and price cuts are related but separate. A rising concession rate signals buyers have more negotiating leverage overall, which can show up as price reductions, added incentives, or both, depending on the specific market.

Why are concessions so much more common in Atlanta and other Sun Belt metros?

These markets saw significant new construction during the pandemic period, and supply has outpaced buyer demand since, giving buyers considerably more leverage and choice.

Are any markets still favoring sellers?

Yes — markets like San Jose, New York, and San Francisco have shown much lower concession rates, reflecting tighter inventory and stronger relative buyer competition in those specific areas.

Should I offer a concession even if a buyer doesn’t ask for one?

Not necessarily upfront, but knowing what you’d be willing to offer before an offer arrives can help you respond quickly and strategically rather than being caught off guard mid-negotiation.

How do I find out how common concessions are in my specific area?

A local real estate agent with current transaction data can tell you concession and price-cut trends specific to your neighborhood and price range, which is far more useful than a national or even metro-wide average.

Understanding your specific local negotiating environment — not just the national headline — is what actually shapes a smart pricing and concession strategy. Get matched with a top 1% local agent who knows exactly how much leverage buyers have in your market, listing for 2% commission.